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Match the Following with the Items Below

Question 104

Matching

Match the following with the items below:

Premises:

Responses:

Dividends paid in additional shares rather than in cash.

stock split

Plans that provide the investor with an opportunity to buy additional shares of stock with cash dividends paid by the company.

stock dividends

The day a stockholder will receive a dividend.

marginal principle of retained earnings

A division of shares by a ratio set by the board of directors.

dividend reinvestment plan

A curve illustrating growth phases of a firm.

dividend payment date

A method of utilizing excess cash that is occasionally made in lieu of additional dividends.

residual dividends

States that the corporation must be able to earn a higher return on retained earnings than stockholders could receive for themselves after paying taxes on the distributed dividends.

stock repurchase

On this date the purchase of stock no longer carries with it the right to receive the dividend previously declared.

life cycle curve

Dividends remaining after a portion of earnings have been reinvested.

ex-dividend date

Premises:

Dividends paid in additional shares rather than in cash.

Plans that provide the investor with an opportunity to buy additional shares of stock with cash dividends paid by the company.

The day a stockholder will receive a dividend.

A division of shares by a ratio set by the board of directors.

A curve illustrating growth phases of a firm.

A method of utilizing excess cash that is occasionally made in lieu of additional dividends.

States that the corporation must be able to earn a higher return on retained earnings than stockholders could receive for themselves after paying taxes on the distributed dividends.

On this date the purchase of stock no longer carries with it the right to receive the dividend previously declared.

Dividends remaining after a portion of earnings have been reinvested.

Responses:

stock split

stock dividends

marginal principle of retained earnings

dividend reinvestment plan

dividend payment date

residual dividends

stock repurchase

life cycle curve

ex-dividend date

Correct Answer:

Premises:

Responses:

Dividends paid in additional shares rather than in cash.

Plans that provide the investor with an opportunity to buy additional shares of stock with cash dividends paid by the company.

The day a stockholder will receive a dividend.

A division of shares by a ratio set by the board of directors.

A curve illustrating growth phases of a firm.

A method of utilizing excess cash that is occasionally made in lieu of additional dividends.

States that the corporation must be able to earn a higher return on retained earnings than stockholders could receive for themselves after paying taxes on the distributed dividends.

On this date the purchase of stock no longer carries with it the right to receive the dividend previously declared.

Dividends remaining after a portion of earnings have been reinvested.